Caterpillar opening facility in China

NEW YORK (AP) - Caterpillar Inc., the world's largest marker of construction and mining equipment, said Wednesday it plans to open a new facility in Wujiang, China, to build mini hydraulic excavators.

The company currently supplies Chinese customers with mini excavators produced at a facility in Xuzhou, China, and with machines produced in Sagami, Japan.

Work on the new facility in Wujiang is expected to begin in late 2010, pending approvals from governmental officials in Jiangsu province. The company expects to begin making mini excavators in Wujiang in 2012.

The facility will be part of Caterpillar's Building Construction Products Division, which has manufacturing operations in the U.S., Japan, Brazil and the United Kingdom.

"In recent years, Caterpillar and its independent dealers have made significant investments to expand the range of products and components produced in China, increase and improve customer support services, and expand and enhance dealer coverage in every province," the company said in a statement.

Caterpillar is based in Peoria, Ill.